TAIB Bank sees solid growth this year
Manama, February 19, 2009
Bahrain-based TAIB Bank predicted it would excel this year after posting a $65 million net loss last year.
The bank, which earned $15 million in 2007, attributed last year's downturn to the global financial crisis.
Bank's leverage ratio stood at a healthy 1.7 and its capital adequacy ratio stood at 23 per cent, well above the Bank for International Settlement requirement of 8 per cent and the Central Bank of Bahrain's requirement of 12 per cent.
TAIB continued to maintain comfortable levels of liquidity with cash and placement with banks, aggregating to $165 million as against bank borrowings of $52 million and deposit from customers of $156 million.
TAIB's fee income increased by 45 per cent from $12.8 million in 2007 to $18.5 million, and net interest income also showed an increase of 4 per cent from $4.3 million to $4.5 million.
During the fourth quarter of last year, TAIB reported a loss of $53 million.
TAIB Securities, the brokerage arm of the bank achieved a record turnover of $2.4 billion last year, increasing the brokerage revenue by 10 per cent from $5.6 million to $6.2 million.
'The world today is facing unprecedented financial crisis affecting both global and regional banks such as TAIB,' said bank chairman and executive chairman of Dubai Group Soud Ba'alawy.
'TAIB recorded significant growth in the operating income during 2008 but suffered due to severe decline in the valuation of certain assets of the bank.
'The fundamentals of the bank are still strong and I am confident that TAIB will excel in 2009.'-TradeArabia News Service